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Explain the steps in the accounting cycle for a merchandising company. Distinguish between a multiple-step and a single-step income statement.
Under a perpetual inventory system, when goods are purchased for resale by a company: purchases on account are debited to Inventory. The sales accounts that normally have a debit balance are: Sales Discounts and Sales Returns and Allowances. A credit sale of $750 is made on June 13, terms 2/10, net/30. A return of $50 is granted on June 16. The amount received as payment in full on June 23 is: Which of the following accounts will normally appear in the ledger of a merchandising company that uses a perpetual inventory system? To record the sale of goods for cash in a perpetual inventory system: The steps in the accounting cycle for a merchandising company are the same as those in a service company except: The multiple-step income statement for a merchandising company shows each of the following features except: If sales revenues are $400,000, cost of goods sold is $310,000, and operating expenses are $60,000, the gross profit is: A single-step income statement:
reports sales revenues and "Other revenues and gains" in the revenues section of the income statement. Which of the following appears on both a single-step and a multiple-step income statement? In a worksheet using a perpetual inventory system, Inventory is shown in the following columns: